Tether, the biggest stablecoin issuer globally, they’re planning to launch a U.S.-based dollar-pegged stablecoin by the end of this year, according to CEO Paolo Ardoino talking to CNBC. The CEO is stepping up his lobbying efforts in Washington, D.C., trying to influence crypto regulation as support for crypto grows among former President Donald Trump’s allies.
During the Token2049 conference in Dubai, Ardoino made it clear that the new domestic stablecoin would be separate from Tether’s existing international products. He mentioned that the launch might happen by the end of the year or maybe in early 2025, depending on how the pending legislation plays out.
Ardoino has been seen making the rounds in Washington, even having lunch with Senator Bill Hagerty on Capitol Hill and holding private meetings with lawmakers. His efforts seem to be in line with the GOP’s GENIUS Act, which could make things easier for foreign stablecoin issuers operating in the U.S. as long as they cooperate with law enforcement.
Tether, which has its headquarters in El Salvador, has had a bit of a rough history with regulators. In 2021, they had to pay $18.5 million to settle claims that they misled the New York attorney general regarding their reserves. Currently, the company claims to hold almost $120 billion in U.S. Treasuries, which are being overseen by Cantor Fitzgerald.
Their audit for the first quarter showed that they had $5.6 billion in extra reserves, which was slightly down from $7 billion at the end of last year. The expansion of the company in the U.S. coincides with the news that Eric and Donald Trump Jr. are planning to launch their own dollar-backed stablecoin through a venture associated with their father’s political brand. This could potentially set the stage for a domestic stablecoin arms race.
